I have a '83 245GLT that from the exhaust there is a large, and mean large cloud of blue smoke. Most of the times the exhaust can't be seen. It seems to be when it has been idling for several minutes but not always. The turbo has about 125K on it. Did a new head gasket in march (about 5K miles ago). Bad turbo?
Eldon
Try cleaning out the PCV system. Start at the oil trap (black plastic box under the intake manifold) and follow all the hoses from it, cleaning out everything.
Sounds like it, but you should check everything else before you replace the turbo, unless it has a large amount of shaft play or is grinding. Check the crankcase ventilation.
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